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Market watch · 37

Australia’s unemployment rate is the highest since 2021

The rate rose from 4.4% to 4.7% in a year, while the number of people in work also grew, by 168,300.

Unemployment can rise while employment grows: it happens when the labour force grows faster than the number of people in work. That is what Australia’s survey shows for the past year. Here is what rose, what the ABS counts as unemployed, why one month says less than twelve, and what it means if you are hiring or looking for work in Australia.

+55,200more unemployed people than in September 2025
+168,300more employed people over the same year
4.7%unemployment rate in September 2026, seasonally adjusted, the highest since October 2021

Australia’s September unemployment rate is back at its 2021 level

20195.2
20206.9
20214.7
20223.6
20233.6
20244.0
20254.4
20264.7
Unemployment rate, Australia, seasonally adjusted, each September from 2019 to 2026, per cent. Australian Bureau of Statistics, Labour Force, Australia, September 2026, read 17 October 2026.

Unemployment and employment both rose

In September 2026, Australia’s unemployment rate was 4.7%, seasonally adjusted, against 4.4% a year earlier. The last month with a higher rate was October 2021, at 5.2%.

The number of unemployed people rose by 55,200 over the year, or 8.2%, to 732,000. Over the same year, the number of employed people rose by 168,300, or 1.2%, to 14,782,700.

Both can rise at once because the labour force grew by 223,500, to 15,514,700. The labour force is everyone employed plus everyone unemployed; the participation rate, the share of people aged 15 and over in it, was 66.8%, against 66.9%.

Provenance: Source
Australia, persons aged 15 and over, September 2025 and September 2026, seasonally adjusted, and the change between them. Rates in per cent; their change in percentage points. Changes are computed from unrounded estimates, as the ABS computes them. Australian Bureau of Statistics, Labour Force, Australia.
MeasureSep 2025Sep 2026Change
Employed people14,614,30014,782,700+168,300
Unemployed people676,800732,000+55,200
Labour force15,291,20015,514,700+223,500
Unemployment rate4.4%4.7%+0.3
Participation rate66.9%66.8%-0.2

What the survey counts

The unemployed are people with no paid work who are looking for it and able to start. The Australian Bureau of Statistics counts them in a monthly sample survey of households, not from benefit claims.

The employed include anyone who did at least one hour of paid work in the survey week. The survey counts people, not jobs, so a person with two jobs is counted once.

The unemployment rate is a share of the labour force, not of the population. 732,000 unemployed people in a labour force of 15,514,700 is 4.7%.

Provenance: SourceWhat this counts
  1. UNEMPLOYED: people aged 15 and over with no paid work in the survey week who had actively looked for work and could have started, or were about to start a job. They are counted in a survey of households, not from benefit claims.
  2. EMPLOYED: people who did at least one hour of paid work in the survey week, or had a job they were away from. The survey counts people, not jobs, and the number rose over the year.
  3. SEASONALLY ADJUSTED AND TREND: two estimates from the same survey. Seasonal adjustment removes the usual calendar pattern; the trend also smooths the survey’s month-to-month movement, and the ABS recommends it for the underlying direction.

So a rate of 4.7% does not say that Australia lost jobs: employment grew by 168,300 over the year. It says the labour force grew by 223,500, and 55,200 of that growth was people without work and looking for it.

One survey, two counts and two ways of reading it, and a reading that forgets any of them says what the source does not.

One month, and the year

In September alone, employment fell by 39,300 and the rate rose by 0.1 point. The ABS asks readers to treat month-to-month changes with caution: a sample survey moves from month to month even when the labour market does not.

The trend, which smooths that movement, shows the same direction over the year: the rate rose from 4.3% to 4.6%. In trend terms the number of unemployed people rose by 66,000 and the number employed by 210,800.

Of the Septembers from 2019 to 2026, the rate was lowest in 2022 and 2023, at 3.6%. It was 6.9% in September 2020, during the pandemic, and 4.7% in September 2021, the same as in 2026.

Provenance: Source
Australia, persons aged 15 and over, each September from 2019 to 2026, seasonally adjusted. Rates in per cent. Australian Bureau of Statistics, Labour Force, Australia.
SeptemberUnemployment rateUnemployedEmployedParticipation
20195.2%711,80012,903,90066.0%
20206.9%931,20012,521,00064.6%
20214.7%632,90012,828,80064.4%
20223.6%510,30013,675,70066.5%
20233.6%519,50014,097,90066.5%
20244.0%603,00014,451,10067.1%
20254.4%676,80014,614,30066.9%
20264.7%732,00014,782,70066.8%

What these figures do not say

They do not say why. Nothing here measures interest rates, migration, population growth or any industry, and no policy is assessed.

They do not say that jobs were lost: employment rose over the year. They say nothing about pay, about any state or territory, or about how long anyone has been looking for work.

They compare Australia only with itself, and none of this is a forecast.

What this means for you

If you are hiring in Australia

In September 2026, 732,000 people in Australia were unemployed: without paid work, looking for it and able to start. That is 55,200 more than a year earlier, an increase of 8.2%. A larger pool of people looking for work does not tell you how many will apply for your roles or what skills they bring; it tells you that, across the whole economy, more people are available and searching than a year ago.

If you are looking for work in Australia

Employment grew by 168,300 in the year to September, so the economy kept adding people in work. But the number of people looking grew too, and the unemployment rate rose from 4.4% to 4.7%. Read the year, not the month: September’s fall of 39,300 in employment is the kind of single-month move the ABS asks readers not to over-read.

How this was counted

Method

  1. One release. Australian Bureau of Statistics, Labour Force, Australia, September 2026, released on 15 October 2026: persons aged 15 and over, seasonally adjusted and trend, read through the ABS Data API on 17 October 2026 at 10:46 (+01:00).
  2. THE FIGURES. Levels are published in thousands and printed here in persons, to the nearest hundred: 732.0 thousand is 732,000. Changes and percentages are computed from unrounded estimates, as the ABS computes them, which is why 14,782,700 minus 14,614,300 prints as a rise of 168,300.
  3. SINCE OCTOBER 2021. The comparison uses unrounded seasonally adjusted rates: no month from November 2021 to August 2026 was as high as September 2026, though August 2026 also rounds to 4.7%. The seasonally adjusted series starts in February 1978.
  4. THE TREND. The ABS recommends the trend for the underlying direction, and revises its latest months as new months arrive. It flags trend breaks during the pandemic, so the trend is compared here only from September 2025 to September 2026.
  5. LIMITS. A sample survey carries sampling error. From May to August 2026 the ABS changed some questions and rotation groups under its Labour Force modernisation; it judges the September figures fit for use, and none of the items it flags as less comparable is used here. Nothing here covers states, pay or causes.
What the data establishes, and what it does not

What the data establishes

  • Australia’s unemployment rate was 4.7% in September 2026, seasonally adjusted, against 4.4% a year earlier, the highest since October 2021.
  • Over the year, unemployed people rose by 55,200, to 732,000, and employed people by 168,300, to 14,782,700.
  • The labour force grew by 223,500, so unemployment and employment rose together.
  • The trend rate, which the ABS recommends for the underlying direction, rose from 4.3% to 4.6%.

What it does not

  • Why: no cause, including interest rates, migration or population growth, is measured.
  • That jobs were lost: employment rose over the year.
  • What September’s monthly fall of 39,300 in employment means: the ABS asks for caution with a single month.
  • Anything about pay, or about any state or territory.
  • Whether unemployment will keep rising: nothing here is a forecast.
Primary sources

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